Four Deutsche Bank Employees Jailed on Thursday

Four of the five Deutsche Bank
employees arrested for money laundering or
obstruction of justice related to a carbon trading scheme will
remain in jail, the Frankfurt prosecutor said on Thursday.

Four of the five Deutsche Bank employees arrested for money laundering or
obstruction of justice related to a carbon trading scheme will
remain in jail, the Frankfurt prosecutor said on Thursday.

One Deutsche Bank employee was allowed home on health
grounds, the prosecutor said.

The employees were arrested during raids on Germany's
flagship lender on Wednesday.

It is too early to conclude whether the raids, by 500 tax
inspectors, police and prosecutors, would yield any new
evidence, Frankfurt prosecutor Guenter Wittig said, adding,
"This will take months. I cannot comment about an ongoing
investigation."

The prosecutor's probe is focused on tax evasion linked to
tax credits and a scheme involving the trading of carbon
permits. As a result of the scheme, Deutsche Bank's 2009 tax
return needed to be adjusted.

Deutsche Bank has said it voluntarily corrected its 2009 tax
return, but noted that authorities disagreed over whether this
had been done in a timely fashion. It declined to comment
further on Thursday.

On Wednesday, prosecutors said they were investigating 25
bank staff on suspicion of severe tax evasion, money laundering
and obstruction of justice, and searched the bank's headquarters
and other premises in Berlin and Duesseldorf.

The investigations included probing the role of Deutsche
Bank co-chief executive Juergen Fitschen and Chief Financial
Officer Stefan Krause.

In a interview to be published in German tabloid Bild on
Friday, Fitschen said he was "shaken" by the allegations but
that he saw no reason to step down.

"I am convinced the allegations will be shown to be
unfounded," he was quoted as saying in an advance version of the
article.

He added however, that Deutsche Bank had made errors in its
drive to be more successful internationally.

"In some instances we lost the correct perspective. We are
determined to fix the errors of the past," he said, adding that
the bank had already tried to change its culture, such as by
setting up a body to review pay structures, and that more such
steps would come.